gayatri projects limited - Edelweiss

GAYATRI PROJECTS LIMITEDInterestInterest charges increased by 1.59% from Rs.1672.40 lacs in the year ended March 31, 2003 to Rs.1699.84 lacs in the yearended March 31, 2004, primarily due to increase in interest payable on working capital facilities, long term loans availedfrom the bank and interest paid in debentures.DepreciationDepreciation increased by 3.62% from Rs.827.02 lakhs in the year ended March 31, 2003 to Rs.857.26 lakhs in the yearended March 31, 2004, primarily due to the acquisition of additional equipment.Profit before taxProfit before taxes decreased by 14.90% to Rs.914.34 lacs in the year ended March 31, 2004 from Rs.1073.84 lacs in theyear ended March 31, 2003.Provision for TaxesProvision for taxes includes current tax liabilities and deferred tax liabilities. Provision for taxes decreased by 5% to Rs.332.98lacs in the year ended March 31, 2004 from Rs.350.55 lacs in the year ended March 31, 2003, primarily due to decrease inour taxable profit.Profit After TaxesProfit after tax decreased by 19.62 % from Rs.723.29 lacs in the year ended March 31, 2003 to Rs.581.36 lacs in the yearended March 31, 2004.Other MattersUnusual or infrequent events or transactionsFinancial or other disability of the clients to honor the contractual payments can effect the timely completion of the projectand lead to erratic payment structure. We had received a project from Maharasthra State Road Development Corporation inthe month of May, 2002. This project was stopped in June, 2005 and was restarted in January, 2006 due to floods, damageto road works undertaken by the company and inability of MSRDC to honor the bills for an amount of Rs.130.83 lacs raisedby the company during the period June, 2005 to September, 2005.Significant economic changes that materially affected or are likely to affect income from continuing operationsThere are no significant economic changes that materially affected Company’s operations or are likely to affect income fromcontinuing operations except for changes in steel and cement prices (for non-escalation contracts).Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenueor income from continuing operations.There are no known trends or uncertainties that have had or are expected to have a material adverse impact on sales,revenue or income from continuing operations except as described in the section titled “Risk Factors” on page no. iii and in“Management Discussion and Analysis of Financial Condition and Results of Operations” in this Prospectus, to Company’sknowledge.Future changes in relationship between costs and revenuesOther than as described I the section titled “Risk Factors” and “Managements Discussion and Analysis of Financial Conditionsand Results of Operation” in this Prospectus, to our knowledge there are no future relationship between cost and incomethat have or had or expected to have a material adverse impact on our operations and finances.Increases in net sales or revenue and Introduction of new products or services or increased sales pricesIncreases in revenues are by and large linked to increases in volume of construction activity carried out by the Company.Total turnover of each major industry segment in which the Company operatedThe Company operates in only one Industry Segment i.e. Construction Industry.144